QCP Trading takes significant step towards full licensing in Singapore

The Seoul Metropolitan Government has launched a new initiative designed to help South Korean fintech firms expand into global markets. According to a Nov. 18 press release, the city and its blockchain partner, Catalyze Research, will utilize the XRP Ledger (XRPL), Ripple Labs’ public blockchain, to provide technology-focused mentorship and facilitate networking with overseas partners.Photo by Kanchanara on UnsplashFunding for global growthParticipating startups are eligible to receive up to $200,000 each, with the total funding pool capped at $1.8 million. The Seoul government anticipates that this initiative will assist early-stage ventures in establishing a meaningful presence in the global marketplace. Selected participants will receive mentorship from Catalyze Research on entering the blockchain ecosystem via the XRP Ledger, refining business models, and developing multichain strategies. The program is open to applicants working in a variety of specific sectors, including blockchain payments, asset tokenization, cross-border transfers, decentralized identifiers (DIDs), decentralized finance (DeFi), and regulatory technology. Beyond the core business training, Seoul is offering technical workshops that allow participants to explore complex topics such as XRPL-based issuance, liquidity configuration, fee optimization, and security architecture in greater depth. Follow-up support programs will continue to assist participating ventures after the initial phase, offering help with investor relations and jurisdiction-specific regulatory consulting. Pilot projects with overseas partners are also planned to further support company growth. The capital’s move to back crypto ventures follows its recognition in the Global Financial Centres Index (GFCI), produced annually by the London-based think tank Z/Yen and the China Development Institute (CDI). In the latest report released in September, Seoul ranked eighth in fintech among 135 cities. Price swings amid XRP ETF debutsWhile the city pushes to grow the country’s blockchain sector, XRP, the native asset of the XRP Ledger, has faced market headwinds. According to CoinMarketCap data, the token’s price dropped more than 15% over the past week amid a broader market downturn. This decline came even after the Nov. 14 launch of XRPC, a Canary Capital–managed ETF that is the first in the U.S. to track the spot price of XRP. Subsequently, the Bitwise XRP ETF is also set to debut on the New York Stock Exchange on Nov. 20. Amid the recent price weakness, XRP’s retail positioning offers a more nuanced backdrop. Glassnode’s Nov. 19 update estimates the average retail cost basis for the token at roughly $2.17, putting the typical holder about 61% in profit. The firm’s analysis a day earlier showed, at the network-wide level, 58.5% of the total supply in profit and 41.5% held at a loss—a structure that the firm said reflected a market dominated by recent buyers and prone to volatility.

Real-World Assets Emerge as a Beacon of Hope for the Blockchain Industry Amid Crypto WinterIn the midst of a crypto winter that has cast a shadow over the blockchain industry, a new opportunity has come to light — the tokenization of real-world assets (RWAs), or tangible assets such as gold and real estate, on blockchain networks.Photo by Tierra Mallorca on UnsplashMajor blockchain companies and industry experts gathered at Klaytn Square Lounge 2023, a blockchain and Web3 event in Gangnam, southern Seoul on Monday to discuss how RWAs could overcome the limitations of the current blockchain market.The rise of RWAsRecently, platforms like RWA tokenization project Elysia and Klaytn Foundation have started to shift their attention to RWAs as a promising avenue in the blockchain market. According to a report by global consulting firm Boston Consulting Group, the total value of the global RWA market, which reached $310 billion last year, is projected to surge to a staggering $16 trillion by 2030.“During the ongoing crypto winter, we are witnessing not only new funds pouring into blockchain projects but also existing funds leaving the market. We see RWAs as a potential solution to this,” said Seo Sang-min, Representative Director at Klaytn Foundation.Seo went on to explain that currently, virtual assets dominate most of the assets on blockchain mainnets like Klaytn, but compared to RWAs such as gold, cash, and real estate, their scale is very small. “We need to expand the utility of RWAs by placing them on the blockchain. Once they are, transaction costs will significantly decrease, and anyone will be able to trade 24/7 worldwide,” he said.Other blockchain experts at the conference also shared this sentiment. “Tokenizing RWAs is crucial because it provides investment opportunities that do not require large sums of money or lengthy waiting periods,” Luc Falempin, CEO of Tokeny Solutions emphasized. Beyond tokenizing the assets themselves, legal contracts and information about the various stakeholders involved, such as asset issuers and investors, can be recorded and shared on the blockchain, which can prove to be very convenient for investors.Revolutionizing investmentAccording to Falempin, most derivative investments involve seeking investment opportunities, creating portfolios, and enduring complicated processes for recovering investment capital that can take over ten years to complete. Additionally, ordinary investors often struggle to raise the substantial funds required for investment, creating high entry barriers. Also, investment contracts were traditionally executed on paper, which is outdated and inconvenient. However, as blockchain technology enables the tokenization of assets, these processes become much simpler.“Through RWA-backed virtual assets, even dozens of individuals can easily participate in investment, eliminating the hassle of dealing with paperwork. Introducing blockchain as a new infrastructure allows all stakeholders to easily view relevant records within the blockchain network,” he stated.The role of DAOsSo, how can investment products like RWA tokens be effectively managed within the decentralized realm of blockchain? Yoon Kim, Chief Marketing Officer of Elysia, mentioned decentralized autonomous organizations (DAOs) as a fit solution.“DAOs are a realistic method that is crucial for implementing the RWA model effectively. All stakeholders within a DAO can make modifications and creations, providing an avenue for managing tokenized assets effectively without government intervention,” Kim said.Technical hurdlesHowever, RWA tokens face several technical challenges. RWA products, which integrate the real world with the blockchain realm, could suffer from the so-called oracle problem, which refers to the inherent inability of blockchains to access external data, leading to a lack of information transparency. Even if the assets are stable, their prices on the blockchain network may differ from those in the real market. Currently, there are no established technical solutions to address these issues.“Rather than getting directly involved, we aim to move in accordance with market prices, but also seek ways to minimize risks with the help of external entities in certain cases,” said James Lim, CEO of Creder.As the crypto winter persists, the blockchain industry is looking towards RWAs as a beacon of hope, offering the potential to bridge the gap between traditional assets and the decentralized world of blockchain, despite the challenges that lie ahead.

The trading volume of South Korean cryptocurrency exchange Bithumb exceeded that of its competitor Upbit as of 10:30 a.m. UTC on Wednesday, as reported by the local news outlet Etnews, which cited data from CoinMarketCap. This shift occurred for the first time in four years. According to CoinMarketCap, as of the specified time, Bithumb's 24-hour trading volume reached KRW 4.93 trillion (approximately $3.8 billion), surpassing Upbit, which recorded a volume of KRW 4.37 trillion. Until 2019, Bithumb was the leading exchange in Korea. However, it ceded its top position to Upbit, which gained a competitive edge through its collaboration with the internet-only bank, Kbank.Photo by Pierre Borthiry - Peiobty on UnsplashZero trading fees and new crypto listingsEarlier in the year, Bithumb initiated a strategic plan with the objective of boosting its trading volume in order to increase its market share in the domestic market to 25%. To achieve this goal, the exchange implemented several key initiatives. One of the significant steps taken was the elimination of trading fees, aimed at attracting more users and increasing transaction volumes. Additionally, Bithumb broadened its cryptocurrency offerings by listing prominent cryptocurrencies such as Tether (USDT) and WEMIX.Questioned sustainability of strategiesIn anticipation of crypto winter giving way to crypto spring, trading platforms are gearing up for more intense competition to increase their market shares. However, there are concerns about the sustainability of strategies like implementing zero trading fees. Critics argue that such policies, while they may temporarily shift market shares, are unlikely to be successful in the long term. This skepticism is largely due to the fact that cryptocurrency exchanges heavily rely on trading fees as a primary source of revenue.  An industry expert has pointed out that unless the cryptocurrency exchanges currently lagging behind develop innovative, paradigm-shifting strategies capable of significantly impacting the market landscape, there's a high likelihood that the ranking order will revert to the previously established, entrenched market order.  In fact, at the time of this publication, Upbit upended Bithumb in 24-hour trading volume, recording KRW 4.4 trillion compared to Bithumb's KRW 3.2 trillion. This data underscores Upbit's strong position in the market, illustrating its continued dominance.